Bengaluru, June 7
Tech spending in India is projected to grow at 10.1 per cent, the highest rate in the Asia Pacific (APAC) region, to reach ₹3.9 lakh crore in 2023, according to Forrester’s Asia Pacific Tech Market Forecast, 2022-27.
Strong government support for ongoing digitalisation efforts will continue to impact investments in building a national digital infrastructure, the report said.
Technology spending in APAC will grow 5.8 per cent to reach $732 billion in 2023. Seventy-four per cent of growth will come from software and services as cloud adoption in the region increases. Additionally, software spending will continue to see a compound annual growth rate of 10.3 per cent through 2027.
“Asia Pacific currently accounts for 75 per cent of global GDP growth. While we anticipate APAC tech spend growth to increase even further, it’s crucial that countries and businesses invest in the right technologies to continue to benefit from growing digital and cloud infrastructure,” said Leslie Joseph, principal analyst at Forrester.
The report further noted that in spite of challenges — including fragile post-pandemic supply chains; shortage of science, technology, and engineering workers; and questions over China’s readiness to restart its economy — APAC tech spending will continue to grow by 6.8-7.3 per cent per year from 2024 to 2027.
Forrester estimates that tech spending in China will grow 7.4 per cent to hit ¥1.7 trillion in 2023. Technology innovation will play a key role in industrial modernisation, and generative AI will catalyse tech investments in all major industries.
In 2023, tech spending in Singapore will hit S$22.17 billion. “The Silicon Valley of Asia” continues to be a stable regional hub for technology talent and innovation, with the government allocating high-level budgets toward innovation initiatives, the report said.